Verified E05 dumps Q&As - 2023 Latest E05 Download
Dumps Questions [2023] Pass for E05 Exam
NEW QUESTION # 10
In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury
- A. as a result of stress or harassment at work.
- B. through fear for the safety of another person involved in an accident which he witnessed.
- C. as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
- D. through fear for his own safety in an accident.
Answer: D
NEW QUESTION # 11
What are the main objectives of the principle of insurable interest?
- A. To reduce moral hazard and to discourage profiteering.
- B. To reduce physical hazard and to discourage profiteering.
- C. To reduce moral hazard and to discourage wagering.
- D. To reduce physical hazard and to discourage wagering.
Answer: C
NEW QUESTION # 12
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of an express term in reaching or recording an agreement?
- A. It may be implied by conduct.
- B. It will usually override any implied term which conflicts with it.
- C. It must be evidenced in documentary form.
- D. It may be oral or in writing.
Answer: B,D
NEW QUESTION # 13
How can an agency relationship be best described?
- A. A person, who has paid another party under a contract, has the right to stand in the place of that other party and avail himself of the rights and remedies of that party.
- B. A person has the authority to act on behalf of another party.
- C. A person has ratified another party's action.
- D. A person has transferred his obligations under a contract to another party.
Answer: B
NEW QUESTION # 14
John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging
£6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?
- A. £6,000
- B. £3,000
- C. £15,000
- D. £5,000
Answer: D
NEW QUESTION # 15
The test of the materiality of facts in an insurance contract is defined according to the opinion of a
- A. reasonable person.
- B. prudent underwriter.
- C. honest proposer.
- D. diligent broker.
Answer: B
NEW QUESTION # 16
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the main sources of new English Law?
- A. Official law reports.
- B. Case law.
- C. Legislation.
- D. International treaties.
Answer: B,C
NEW QUESTION # 17
Tim is a local insurance broker. He has authority to receive premiums for a personal lines insurer and earns commission from the insurer for sales. Paul, an elderly customer, asked Tim for advice regarding his personal insurance requirements and to assist with completing the proposal form for household insurance. In these circumstances, who, if anyone, is Tim's principal?
- A. Both the insurer and Paul at different times.
- B. No one as Tim is not a party to the insurance contract.
- C. Paul as it is a consumer contract.
- D. The insurer at all times.
Answer: D
NEW QUESTION # 18
What is the maximum contingency fee percentage under a damages-based agreement that can be charged by a solicitor for personal injury cases and employment tribunal cases respectively?
- A. 35% for personal injury cases and 25% for employment tribunal cases.
- B. 50% for both cases.
- C. 35% for both cases.
- D. 25% for personal injury cases and 35% for employment tribunal cases.
Answer: D
NEW QUESTION # 19
A property policy contains a condition regarding prompt loss notification. If the insured fails to comply with this condition, in practice, the insurer is likely to
- A. only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
- B. avoid the claim automatically due to the breach of the policy condition.
- C. settle the claim and cancel the insurance policy from inception.
- D. settle the claim and recover its outlay from the insured.
Answer: B
NEW QUESTION # 20
For this question more than 1 option is correct. You must select all the correct options to gain the mark. Which special defences are available to the fort of libel?
- A. Necessity.
- B. Privilege.
- C. Honest opinion.
- D. Statutory authority.
- E. Prescription.
Answer: B,C
NEW QUESTION # 21
In what circumstances is abandonment automatic under a marine hull insurance policy?
- A. The insured has sent a formal notice of abandonment.
- B. The constructive total loss of the vessel.
- C. The insured has performed an action of abandonment.
- D. The actual total loss of the vessel.
Answer: D
NEW QUESTION # 22
A warranty in Emily's personal travel insurance policy states that cash must be kept in a locked safe. Whilst on holiday, a storm destroys her hotel and its contents. When Emily completes a claim form for loss of money, she admits that her cash was NOT locked in the safe. What will be the insurer's likely response to her claim for the lost money?
- A. Make an ex-gratia payment.
- B. Avoid the policy ab initio.
- C. Pay the claim in full.
- D. Reject the claim for breach of warranty.
Answer: C
NEW QUESTION # 23
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. The doctrine of subrogation is excluded from the policy.
- B. Cover is suspended whilst the insurer pursues an action for subrogation.
- C. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
- D. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
Answer: C
NEW QUESTION # 24
A claimant may possibly recover money transferred under an illegal contract when
- A. the legal portion of the contract can be severed from the illega portion.
- B. the contract is against public policy but not substantive law.
- C. both parties to the contract are equal in wrongdoing.
- D. the illegality makes the contract voidable rather than void.
Answer: C
NEW QUESTION # 25
In terms of private motor insurance, a renewal offer can be accepted
- A. by the proposer acting in reliance of the offer.
- B. only by written communication.
- C. only by the proposer personally.
- D. by any third party.
Answer: A
NEW QUESTION # 26
A breach of warranty under the general law of contract legally entitles an injured party to
- A. avoid the contract ab initio.
- B. avoid the contract from the date of the breach.
- C. claim damages.
- D. obtain specific performance.
Answer: C
NEW QUESTION # 27
According to statute law, an unfair term in a consumer insurance contract is defined as one which
- A. does not restrict liability for death or personal injury.
- B. causes a significant imbalance in the parties' rights to the detriment of the consumer.
- C. provides insurance where the scope of cover is narrow compared to the premium charged.
- D. has been individually negotiated and is to the detriment of either one of the parties.
Answer: B
NEW QUESTION # 28
Dan made a financial arrangement on behalf of Liz. However, Liz had the arrangement set aside by the court on the basis that she had been unduly influenced by Dan. To establish undue influence, the court must have specifically identified Dan as
- A. a person holding a dominant position over Liz.
- B. a person holding a senior position at Liz's bank.
- C. Liz's husband.
- D. Liz's independent financial adviser.
Answer: A
NEW QUESTION # 29
A person insures her own life under a life insurance policy but does so expressly for the benefit of another. To facilitate this, which type of arrangement is most commonly established?
- A. Trust.
- B. Coinsurance.
- C. Power of Attorney.
- D. Lien.
Answer: A
NEW QUESTION # 30
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CII E05 exam is structured in a way that enables candidates to demonstrate their understanding of the legal and regulatory frameworks that underpin the insurance industry. E05 exam covers a wide range of topics, including the principles of insurance law, the legal requirements for policy formation and interpretation, the law of agency and the legal aspects of underwriting and claims handling. E05 exam is designed to be challenging, and candidates are required to demonstrate a high level of knowledge and understanding of the subject matter.
Updated CII Study Guide E05 Dumps Questions: https://freepdf.passtorrent.com/E05-latest-torrent.html